lap: qs-039 objectives explain the purpose of an annual report. describe the components of an annual...
TRANSCRIPT
LAP: QS-039LAP: QS-039
ObjectivesObjectives
Explain the purpose of an annual report.Explain the purpose of an annual report.
Describe the components of an annual Describe the components of an annual report.report.
Explain the purpose of anExplain the purpose of anannual report.annual report.
ObjectiveObjective
• SEC requires a yearly SEC requires a yearly financial overview.financial overview.
Companies Tell Their StoryCompanies Tell Their Story
• Most detailed version is Most detailed version is Form 10-K.Form 10-K.
• User-friendly annual report User-friendly annual report often availableoften available
• Within 90 days of fiscal Within 90 days of fiscal year endyear end
• SEC adopting an SEC adopting an accelerated systemaccelerated system
• Investors will get Investors will get information more quickly.information more quickly.
• Large companies will have Large companies will have to file within 60 days.to file within 60 days.
When Is It Filed?When Is It Filed?
• Board of DirectorsBoard of Directors
Elected by shareholdersElected by shareholders
Directors act in shareholders’ Directors act in shareholders’ best interestbest interest
Determine dividend policyDetermine dividend policy
Serve on important Serve on important committees (audit and committees (audit and compensation)compensation)
Two-Level Management StructureTwo-Level Management Structure
Two-Level Management StructureTwo-Level Management Structure
• Board of DirectorsBoard of Directors
Two kinds: inside and outsideTwo kinds: inside and outside
Inside: employees or major Inside: employees or major stockholdersstockholders
Outside: independent, not Outside: independent, not associated with companyassociated with company
50% of board must be 50% of board must be independentindependent
Two-Level Management StructureTwo-Level Management Structure
• Corporate OfficersCorporate Officers
Responsible for:Responsible for:
Day-to-day operationsDay-to-day operations
Making the company Making the company profitableprofitable
Two-Level Management StructureTwo-Level Management Structure
• Chief Executive Officer (CEO)Chief Executive Officer (CEO)
PresidentPresident
• Chief Operations Officer (COO)Chief Operations Officer (COO)
Senior Vice PresidentSenior Vice President
• Chief Financial Officer (CFO) Chief Financial Officer (CFO)
Describe the components of an Describe the components of an annual report.annual report.
ObjectiveObjective
• Letter to ShareholdersLetter to Shareholders
• Annual HighlightsAnnual Highlights
• Financial HighlightsFinancial Highlights
Annual Report ContentsAnnual Report Contents
• Management’s Management’s Discussion and Discussion and Analysis (MD&A)Analysis (MD&A)
• Financial StatementsFinancial Statements
• Notes to the Financial Notes to the Financial StatementsStatements
Annual Report ContentsAnnual Report Contents
• Report of Management on Report of Management on the Financial Statementsthe Financial Statements
• Report of the Independent Report of the Independent AuditorAuditor
• ““Back Cover” Information Back Cover” Information
Annual Report ContentsAnnual Report Contents
• ““A Plain English Handbook”A Plain English Handbook”
• Readability a factor?Readability a factor?
• Admired companiesAdmired companies
Easy to readEasy to read
• Companies with scandalsCompanies with scandals
Difficult to readDifficult to read
• Google founders inspired by Google founders inspired by Warren BuffettWarren Buffett
Say What?Say What?Quick CaseQuick Case
MarkED
Acknowledgments
Original DevelopersChristopher C. Burke and
Janet Coulon, MarkED
Version 1.0
Copyright © 2007MarkED Resource Center
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